Closed C Covered Call

As discussed here CCI has a long position in the financial sector etf (xlf) via the Jan 15 $10 Call, that has usually been hedged via a shorter duration short call in Citigroup (C).

Just last week, CCI rolled up and out a covered call in C as a hedge against a long call in the financial ETF XLF.
Since then the C and the market have pulled back. Today, CCI closed the covered call in C for a $.07 debit. CCI will be looking for an opportunity to re-establish this hedge.

As of the close of business the returns related to various related positions are

• Holding the XLF ETF would have returned 10.2%
• The leverage obtained via holding the Jan 15 $10 XLF call would have returned 23.3%.
• The long/short strategy discussed in this thread is up 24.6%.  

This approach continues to achieving its objective of providing leveraged returns with some hedging of downside risks, but still a long way to go.